|Day's Range||0.7100 - 2.3500|
As has been widely documented, a slew of exchange traded funds carry extremely low fees and, in many cases, fees are declining in the ETF universe. Some of the largest issues of ETFs are not shy about ...
Editor's note: "7 One-Stock Portfolios for Passive Investors" was previously published in June 2019. It has since been updated to include the most relevant information available.Are you looking for a portfolio of stocks to buy but don't want to buy a broad-market index ETF? If so, Robert Kirby's idea of the Coffee Can portfolio should do the trick.InvestorPlace - Stock Market News, Stock Advice & Trading TipsRobert Kirby was a portfolio manager based in Los Angeles who spent most of his working life with the Capital Group, one of the world's largest and oldest investment management companies. In 1984, Kirby wrote an article for the Journal of Portfolio Management entitled The Coffee Can Portfolio, an article in which he makes a case for buying a 50 quality stocks and holding them indefinitely. He looked at this concept as actively passive investing. While he admitted that this wouldn't make active managers very rich because they'd have to charge such a low fee given how little work was involved, he believed that someone should come along to offer such a service. * 7 Worst Stocks in the S&P 500 in 2019 These seven stocks to buy that should get the job done over the long haul. Berkshire Hathaway (BRK.A, BRK.B)Source: Jonathan Weiss / Shutterstock.com The world's largest ETF by assets under management is the SPDR S&P 500 ETF (NYSEARCA:SPY) at $263 billion. To own that you'll pay an annual fee of 0.09% of whatever you have invested in the ETF. By comparison, if you buy 100 shares of Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B), you'll pay the commissions for any shares you purchase, and that's it. If you hold them indefinitely, your annual fee over 10 years would be almost non-existent, certainly making it attractive to passive investors. There are plenty of experts out there who would suggest that with Warren Buffett approaching 90 years of age, now is not the time to recommend Berkshire stock. That's for the simple reason that BRK's share price will get hit when the Oracle of Omaha finally passes.However, many others feel that Berkshire stock would rise upon his death, including Buffett himself. At the end of the day, buying this particular one-stock portfolio gives you a small part of $739 billion in diversified assets spread across the Globe. BRK stock will do just fine after Buffett's gone. And you can't beat the fees. Brookfield Asset Management (BAM)If you don't mind investing in a company that's based in Canada, Brookfield Asset Management (NYSE:BAM) is an excellent way to own a diversified portfolio of infrastructure, private equity, and real estate assets. In addition to those assets, it also owns a portfolio of 216 stocks worth $23.8 billion as of its most recent 13F summary page. Its largest holding is a 79% ownership stake in GrafTech International (NYSE:EAF) worth $2.9 billion. One of its other large holdings is a $549 million investment in SPY, which I spoke about in the Berkshire section. Like everyone else, it pays 0.09% to own that ETF, which works out to a little less than $495,000 in annual fees. Thought to be the leading bidder for Genesee & Wyoming (NYSE:GWR), an operator of short-line railroads in the U.S., you will never be bored following all the wheeling and dealing that CEO Bruce Flatt and his management do to deliver above-average shareholder returns. * 7 Triple-'F' Rated Stocks to Leave on the Shelf Although Brookfield is an asset manager and is paid fees to manage the assets, it also puts a significant amount of its own capital into these deals, providing shareholders with the assurance that their interests are aligned with Brookfield's. Compass Diversified Holdings (CODI)Compass Diversified Holdings (NYSE:CODI) is a holding company that buys middle-market businesses that are profitable and growing. It first came to my attention in 2011. Since then, I've recommended it from time to time. The latest being July 2017. At the time it was trading around $17.30. Today, it's up around $19, an average 10% return over the past two years. "Like Brookfield, CODI is part private equity firm, part strategic acquirer, and part asset manager. Set up as a grantor trust and publicly traded partnership, it is neither a business development company (BDC) nor a REIT, and is not required to distribute a minimum amount of cash flow to shareholders," I wrote at the time. "The company's business model allows it to take the long-term view with all of its investments."CODI gained some notoriety earlier this year when it sold one of its portfolio companies -- Manitoba Harvest is a maker of hemp-based foods sold across the U.S. and Canada -- to Tilray (NASDAQ:TLRY) for CAD $419 million, a move that got the cannabis company into one of the industry's biggest areas of growth. If you buy CODI whenever it trades below $15, you will make money in the long run. Loews Corporation (L)Source: Shutterstock Although the holding company run by New York's Tisch family has had a rough go of it in recent years, I never doubted that Loews (NYSE:L) stock would one day turn the corner and deliver a strong year on the markets. Year to date, L is up 13.1% year-to-date through June 25, the best annual performance in many years. Why the big move?Well, for starters, in the quarter ended March 31, Loews increased its net income by 34% to $394 million. On a per-share basis, it grew net income by 43% due to fewer shares outstanding. On the top line, Loews grew its revenues by 4.9%, to $3.76 billion from $3.58 billion a year earlier. Although in its latest quarter, it appears to have returned to previous levels. * 8 Dividend Stocks to Buy for a Recession The company continues to use its excess cash flow to buy back its shares. In the first quarter, it repurchased 6.8 million shares at an average price of $47.35 a share. In the same period a year earlier, it bought back 9.9 million of its shares for $497 million. If you look at its 10-Q, you'll see that CNA Financial (NYSE:CNA), its 89%-owned subsidiary, generated 77% of the company's net income in the quarter. Like Berkshire, insurance is a critical holding in the Loews empire. In 1974, Loews acquired 56% of CNA for $2.50 a share on a split-adjusted basis. Those shares today are worth approximately $26 a share, a return of almost 6% annually, not including the gains on the additional shares it's acquired over the years along with the income it's received from its ownership. It's the foundation of Loews. Fairfax Financial Holdings (FRFHF)Source: Shutterstock This is the second of three Canadian one-stock portfolios I'm recommending. Fairfax Financial Holdings (OTCMKTS:FRFHF) is sometimes called the Berkshire Hathaway of Canada. Founded in Toronto in 1985 by Indian-born investment manager Prem Watsa, the company's book value per share has grown by 18.7% over the past 34 years from $1.52 in 1985 to $432.46 in 2018.After a couple of bad years in the markets, Fairfax stock is up 14.2% year to date (including dividends) through June 25, returning the stock to its usual double-digit annual returns. Like Berkshire, Fairfax's business is built on an insurance foundation. In the first quarter ended March 31, the company's insurance operations had an operating income of $246.7 million, 3.8% higher than a year earlier. Unfortunately, its non-insurance business saw operating income drop by 46.4% in the quarter. However, it did manage to deliver net gains on its investments of $723.9 million, bringing its net income to $769.2 million, 12.4% higher than a year ago. If you like conservatively financed businesses, Fairfax is the one stock to buy, with total debt to total capital of just 29.2%. During the quarter, FRFHF repurchased $172.3 million of its stock at an average price of $468.21 a share. Outside the company's insurance business, its investments in India and Africa and the retail industry hold out the most promise for the future. LVMH (LVMUY)Source: Mathieu Lebreton via FlickrBernard Arnault went over the $100-billion mark June 20, making the CEO of luxury goods conglomerate LVMH (OTCMKTS:LVMUY), the third wealthiest person in the world behind Jeff Bezos and Bill Gates, but ahead of Warren Buffett. Arnault, who owns 46% of LVMH, has seen his wealth increase dramatically in 2019, due to a 44.1% increase in the company's stock year to date through June 25. While investors have heard of many of its luxury brands: Louis Vuitton, Fendi, Christian Dior, Moet & Chandon, Glenmorangie, Guerlain, Tag Heuer, and Sephora, the story of how Arnault gained control of this incredible group of businesses is what makes LVMHY so attractive as an investment. In 1984, Arnault bought a bankrupt French textile company that happened to also own Christian Dior with $15 million from his family and the rest financed with debt. Quickly, he went to work buying up fashion houses in Europe and turning them into profitable businesses that generate vast amounts of cash. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Today, it generates almost $53 billion in annual sales from 70 different brands. Arnault is quite possibly the best capital allocator in the world, better than even Warren Buffett. Power Corporation (PWCDF)Source: Shutterstock The final of my three Canadian one-stock portfolios to buy is Montreal-based Power Corporation (OTCMKTS:PWCDF), a holding company controlled by the Desmarais family through a dual-class share structure that gives them 59% of the votes but much less of the actual equity. In turn, the labyrinth-like organizational structure gives it control over both insurance company Great-West Lifeco (OTCMKTS:GWLIF) and asset manager IGM Financial (OTCMKTS:IGIFF) through its 65.5% ownership in Power Financial (OTCMKTS:POFNF).While Great-West Lifeco and IGM Financial are large organizations, it is Power Corporation's investments in fintech companies that are most appealing in terms of future growth. One of them is Toronto-based robo advisor Wealthsimple, which operates in Canada, the U.S., and the UK, managing more than $3.4 billion in assets under management for over 100,000 customers. Power owns 89% of Wealthsimple.While Power's stock continues to underperform relative to both the S&P/TSX Composite Index and S&P 500, the long-term potential of its fintech investments can't be overlooked. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Top Small-Cap Stocks Of 2019 * Critical Levels to Watch in 7 Marijuana Stocks * 5 Smaller Cloud Stocks That Have Plenty of Potential The post 7 One-Stock Portfolios for Passive Investors appeared first on InvestorPlace.
It was a quadruple witching day on Wall Street, leading to extra volatility on Friday. Some late-session trade headlines didn't help matters. Let's look at a few top stock trades in deep detail. Top Stock Trades for Tomorrow 1: ROKUWe covered Roku (NASDAQ:ROKU) earlier this week, but given the drumming that it took Friday -- down more than 20% at one point -- I thought it was worth looking at again. InvestorPlace - Stock Market News, Stock Advice & Trading TipsShares bounced on Thursday following a test of the 50-day moving average. However, they began Friday under pressure after Pivotal Research initiated the stock with a sell rating and $60 price target. * 8 Dividend Stocks to Buy for a Recession Where are we now? The 100-day is at $109.70, while the gap-fill from the post-earnings surge is down at $100.97. Near there is the 50% retracement for the one-year range at $101.43. In between the downside levels (the gap fill and the 50% retracement), and the upside (the 100-day moving average), is Roku stock price. When shares were trading at $105.93 -- which they were at one point on Friday -- it was down 40% from its highs. From its peak, Roku stock fell about 60% in Q4. So this name has a tendency to shed some weight, but it has given investors an opportunity to get long too. A few lucky ones did. With 45 minutes to go in the session, Roku stock already surpassed 57 million shares traded. It feels greedy, but I would love to see Roku fill its gap back down to ~$101. A lower open on Monday that reclaims Friday's close would be the reversal that short-term traders need to get long this one again. Over the 100-day moving average could get a squeeze going up to the 38.2% near $119 and possibly the 50-day near $128. If the gap-fill level and the 50% retracement doesn't hold, the August lows near $96 are on the table. A flush lower from there would be possible if buyers don't step up and defend Roku. Top Stock Trades for Tomorrow 2: AmazonWith the stock market near its all-time highs and with several mega-cap tech companies back in favor -- like Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) -- it's interesting to see Amazon (NASDAQ:AMZN) act as a laggard. Shares are down almost 12% off the July highs, when it looked like Amazon stock was going to breakout. The stock has spent 2019 putting in a series of higher lows (blue line), although AMZN is threatening to break that trend should it continue much lower. Adding more weight to the current price action, the 200-day moving average is about $20 per share below current levels. Should AMZN lose uptrend support and the 200-day moving average, range support at $1,750 will almost instantly be on the table. Further, the 61.8% retracement is in this area too, at $1,757. If this area fails, then the June lows near $1,672 will be in the cards as Amazon stumbles into no man's land. On the upside, look to see how the stock does with the $1,850 area. There it has range resistance and the 50-day moving average. At $1,879 is the 78.6% retracement. Over this area puts $2,000+ back on the table. That's a lot of detail to absorb. So try to keep it simple. Below the 200-day moving average, and range support at $1,750 is on the table. Below that mark is bearish. If the 200-day holds, $1,850 resistance is on the table. Above that is bullish and over $1,880 puts $2,000+ in the realm of possibilities.In between is chop. Top Stock Trades for Tomorrow 3: S&P 500 (SPY)Many equity traders prefer to use the SPDR S&P 500 ETF (NYSEARCA:SPY) instead of the S&P 500. So let's take a closer look at the SPY. Interestingly, the SPY made a new 52-week high this week, while the S&P 500 did not. And while it hovers just below all-time high resistance between $300 and $301, investors having to digest a Fed day. That's shown on the charts via a blue box. I tweeted earlier on Friday that, once the SPY went below the Fed-day highs, it put the Fed-day lows on the table. So long as we remain beneath that mark, those lows remain on the table. Below the lows could create selling pressure. In short, above the box is good, below the box is bad. Should the SPY reclaim the Fed-day highs and push over $300, then the recent highs at $301.24 are on the table and above that is blue sky. If the SPY takes out the Fed-day lows, we'll have to consider downside levels. The first downside mark is the 20-day moving average currently near $296 and below that is the 50-day at $239.65. Should the SPY fall below those levels, prior range resistance from August will be a key level to watch, between $292.50 and $293. Below that mark and we could really get some downside follow through. * 7 Triple-'F' Rated Stocks to Leave on the Shelf So again, to keep it simple: Over the Fed-day highs and upside can continue. Below the Fed-day lows and we have to be on guard. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL, AMZN and ROKU. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Triple-'F' Rated Stocks to Leave on the Shelf * 10 Excellent Stocks to Watch for 2020 and Beyond * 7 Consumer Stocks to Buy in an Uncertain Market The post 3 Top Stock Trades for Monday: ROKU, AMZN, S&P 500 appeared first on InvestorPlace.
U.S. markets and stock exchange traded funds slipped mid-Friday after Chinese delegates cancel a trip to United States' farms, fueling fears that tenuous plans for trade talks were already breaking down. According to the Montana Farm Bureau, Chinese agriculture officials who were scheduled to visit U.S. farm states canceled their trip to Montana, and they will now return to China sooner than originally expected, Reuters reports. The Chinese delegates were in the U.S. for trade talks as President Donald Trump stated he wanted a completed trade deal and not just an agreement to buy more U.S. agricultural goods.
The Federal Open Market Committee decided Sept. 18 to lower its target range for the federal funds rate by 25 basis points, but Federal Reserve Bank of St. Louis CEO James Bullard said more should have ...
Negative interest rates upend familiar financial relationships, yet they have become pervasive across several developed global markets Continue reading...
U.S. markets and stock ETFs slipped toward the end of Thursday, a day after the Federal Reserve cut interest rates and left investors wondering about the future monetary policy outlook. On Thursday, the Invesco QQQ Trust (QQQ) was up 0.2%, SPDR Dow Jones Industrial Average ETF (DIA) fell 0.2% and SPDR S&P 500 ETF (SPY) was flat. Investors continued to comb over the Fed's latest outlook on interest rate cuts while waiting for further developments in trade talks between the U.S. and China as representatives were scheduled to meet on Thursday, the Wall Street Journal reports.
It was a very quiet day in the stock market today, with the S&P 500 and Dow Jones Industrial Average finishing close to flat on Thursday.The SPDR S&P 500 ETF (NYSEARCA:SPY) fell 1 basis point, the SPDR Dow Jones Industrial Average (NYSEARCA:DIA) dropped 0.2% and the PowerShares QQQ ETF (NASDAQ:QQQ) rallied almost 0.2%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWe've had a lot of news to digest lately, even though the stock market continues to chop around close to its high. The SPY ETF actually made a new all-time high on Thursday, albeit briefly.However, we've now seen significant moves in bonds, gold, high-growth tech stocks and have seen the S&P 500 break out of its August trading range. Further, investors heard from the Federal Reserve on Wednesday that it will cut interest rates. To top it all off, U.S.-China trade war headline risks are still possible.It's been a complex couple of weeks. It also has some investors wondering what asset class will make the next big move. Will it be bitcoin? Breakout or Breakdown for Bitcoin?Bitcoin bounced hard off its $9,600 lows today, but the charts do not look all that great. The cryptocurrency is below most of its major moving averages, with the exception of the 200-day. Worse though, it's making a series of lower highs as resistance squeezes it against support down near $9,360.This pattern is known as a descending triangle, a bearish technical setup where investors are looking for resistance to break the asset price below support. In this case, a break below $9,360 support could send bitcoin down to its 200-day moving average, currently near $8,000. * 8 Dividend Stocks to Buy for a Recession If bitcoin can hurdles its 20-day, 50-day and 100-day moving averages, as well as downtrend resistance -- which would require a move north of $10,500 presently -- then we have a breakout on our hands.The best setup for investors may be to wait and see which one comes first, and then place their respective trades. That's opposed to guessing whether it will breakout or breakdown.Investors can also trade bitcoin via the Grayscale Bitcoin Trust (OTCMKTS:GBTC), shown below. Movers in the Stock Market TodayMicrosoft (NASDAQ:MSFT) stock hit new all-time highs after the company announced a $40 billion buyback plan and upped its dividend by 11% to 51 cents per share. While the payout remains stubbornly low -- yielding just under 1.5% -- keep in mind that MSFT stock is up nearly 150% over the past three years. In 2019 alone, it's up about 25%.It continues to lead mega-cap tech in market cap too, now trading with a $1.1 trillion valuation.Tesla's (NASDAQ:TSLA) Model 3 received the top safety rating from the Insurance Institute of Highway Safety. That's the first of Tesla's four vehicles to receive the designation, if we're including the original Roadster.Airbnb says the company will go public in 2020 after earlier announcing that it generated $2 billion in revenue in the second quarter. While there were rumblings of a 2019 IPO at one point, there's little surprise this one isn't coming this year. The lackluster response from the public for Uber (NYSE:UBER), Lyft (NASDAQ:LYFT), Slack (NYSE:WORK) and certainly We didn't help matters.Roku (NASDAQ:ROKU) tumbled more than 13% on Wednesday and was set for another nauseating run on Thursday. In pre-market trading, shares were down more than 5% at one point. However, after the company announced several new streaming products, shares ended the day higher, climbing 3% on Thursday. Let's see if the recent lows can stick. Otherwise, this may just be a dead-cat bounce before more lows are made. Splitting Up?According to reports, AT&T (NYSE:T) is reportedly weighing whether to divest its DirecTV unit. This could come via spinoff or potentially a combination with Dish Network (NASDAQ:DISH). AT&T acquired the asset in 2015 for nearly $50 billion.The asset generates solid cash flow for AT&T, but with its bloated balance sheet and the continual loss of subscribers due to cord-cutting, DirecTV is a business that investors bemoan. AT&T has since said it's not considering the move, but shares still rallied roughly 1% on the day.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU and T. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Stocks to Buy for a Recession * 10 Companies Making Their CEOs Rich * The 7 Best S&P 500 Stocks of 2019 So Far The post Stock Market Today: Breakout or Breakdown for Bitcoin? appeared first on InvestorPlace.
The SPDR S&P 500 ETF (NYSEARCA:SPY) hit a new 52-week high in Thursday's session, but did not do so with overwhelming confidence. We'll have to see how the action shakes out over the next few days and weeks, after the Fed cut rates on Wednesday. Here are our top stock trades. Top Stock Trades for Tomorrow 1: GogoDid this trade in Gogo (NYSE:GOGO) pay off or what? We highlighted it in early September as a top stock trade and these Twitter traders crushed it too.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Shares are finally taking a breather. I want to see if the $6 level will now act as support. There it will find prior resistance and the 50-week moving average. If it does and GOGO takes out this week's high, a run to $8+ is on the table.Below $6 and Gogo will need some time to reset. Top Stock Trades for Tomorrow 2: AlibabaThis was another one we highlighted earlier this month, as Alibaba (NYSE:BABA) approached $179 to $180 resistance.With uptrend support creating a series of higher lows, this ascending triangle was prepped for a breakout. On Thursday we got that breakout, but BABA stock failed to hold much of its gains on the day.Investors now need to see if $179 to $180 will act as support. If it does, they need to see BABA then take out Thursday's highs. If it fails as support, it very well could be a failed breakout, in which case the 20-day moving average and uptrend support become the must-hold levels. Top Stock Trades for Tomorrow 3: TargetTarget (NYSE:TGT) stock continues to show impressive relative strength since reporting blowout earnings in mid-August, which is why I'm looking for it to be a market leader going forward.Shares are being buoyed by the 20-day moving average and are putting in a series of higher lows. I'm looking for a breakout over $110 now. Over $110.94 -- the prior highs -- and TGT can really gain some momentum. Top Stock Trades for Tomorrow 4: U.S. SteelU.S. Steel (NYSE:X) is keeping up the ugliness, falling more than 10% on the day.The silver lining is that shares are rallying off the lows. But with so many bearish trends, it's hard to get excited about this one. If X breaks its lows from last month, a plunge into no man's land could be next.This name doesn't excite me until it's over $13.50. Top Stock Trades for Tomorrow 5: Monster BeverageWe were looking for this one to "go" earlier this month, but each time Monster Beverage (NASDAQ:MNST) has fizzled out on its breakout attempt.The plus side is that it continues to put in higher lows, as uptrend support squeezes it higher. Let's see if shares can take out last week's highs near $59.56. If it can, the 50-day moving average and $60.50 are the next upside targets. * 8 Dividend Stocks to Buy for a Recession On the downside, see that MNST doesn't fall below $57.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long GOGO via options. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Stocks to Buy for a Recession * 10 Companies Making Their CEOs Rich * The 7 Best S&P 500 Stocks of 2019 So Far The post 5 Top Stock Trades for Friday: GOGO, BABA, TGT appeared first on InvestorPlace.
Greatly Exaggerated? In 1897, Mark Twain was on a speaking tour in London, seeking as he often did to raise funds to pay off his debts, when the English press first reported him ill and soon after reported him dead. The American author responded with his famous line that, “reports of my death have been greatly exaggerated.” If fact, Twain may have said the report of his death was “an exaggeration,” but that is not nearly as piquant as the popular version of the timeless phrase.
As investors brace for a third straight quarter of corporate earnings declines, a key profit gauge that flashed warning signs before the Great Recession now suggests that a new economic downturn is "imminent," according to Albert Edwards, the co-head of global strategy at Societe Generale. "This divergence is quite normal just before a recession," Edwards writes in recent note to clients.